Travelers jumps after earnings beat as Netflix, Alphabet and chip stocks slide

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Travelers jumps after earnings beat

Highlights

Travelers surges after reporting Q2 EPS of $10.04 and revenue of $11.53 billion, both beating LSEG analyst estimates and lifting the U.S. Insurance ETF 2%.
Netflix slides over 7% despite largely in-line Q2 results, as investors react negatively to new limits on its 'What We Watched' engagement reports.
Technology stocks weigh on markets as iShares Semiconductor ETF drops nearly 1% and Alphabet falls 2% amid concerns over delayed Gemini AI and broader sector weaknes.

Midday movers across earnings and company updates

As reported by CNBC, Travelers is leading midday gainers after the insurer reports a strong second-quarter earnings beat, with profit of $10.04 per share topping the $5.42 expected by analysts polled by LSEG and revenue of $11.53 billion also coming in above estimates.

The move lifts the iShares U.S. Insurance ETF 2% on the day, while Allstate and Hartford Insurance each rise more than 2%. GSK's U.S.-traded shares fall more than 2% after the drugmaker says it will stop further development of chronic cough treatment camlipixant following mixed late-stage clinical trial results.

Nebius Group advances more than 4% after announcing $775 million in debt financing backed by its graphics processing units infrastructure and contracted cash flows tied to an agreement with an investment-grade customer. The company says it will use the proceeds to expand its global AI cloud platform.

Netflix drops more than 7% even though its second-quarter results are broadly in line with expectations, with earnings of 80 cents per share on revenue of $12.56 billion compared with analyst forecasts for 79 cents per share on $12.59 billion in revenue. Investors also react to the company's decision to reduce how often it releases its "What We Watched" engagement reports.

Intuitive Surgical falls more than 12% after posting second-quarter results, despite reporting adjusted earnings of $2.80 per share on revenue of $2.89 billion, both above analyst expectations. The company maintains its full-year outlook for da Vinci procedures and continues to expect growth of around 14%.

SpaceX declines more than 4% after aborting the launch of its Starship rocket. Elon Musk says in a post on X that some engines do not start, triggering an automatic launch abort, and says the company will try again in the coming days.

BP and ConocoPhillips each gain about 1% after Brian Sullivan reports they will announce new investments in Iraq on Friday. The size of the commitments is not immediately disclosed, but people familiar with the matter say the investments will total billions of dollars and could potentially reach tens of billions.

Alcoa slips 3% despite second-quarter results that beat forecasts, reporting adjusted earnings of $2.12 per share on revenue of $3.97 billion. The aluminum producer also lowers its 2026 alumina production outlook, tempering the positive earnings reaction.

Fifth Third Bancorp loses 2% after a slight second-quarter earnings miss, although the regional bank says net interest income is in line with expectations and up 48% from the same quarter a year earlier.

Technology weakness weighs on broader market tone

Semiconductor stocks remain under pressure, with the iShares Semiconductor ETF down nearly 1% and heading for its fifth losing day in the past six sessions. The group is also on track for its worst week since April 2025, as Taiwan Semiconductor Manufacturing loses almost 2%, Astera Labs drops 4% and Credo Technology falls more than 3%.

Alphabet extends its decline for a second straight session, falling 2% after Bloomberg reports on Thursday that Google is months behind in delivering its latest Gemini AI model. The stock had already tumbled almost 4.5% on Thursday after that report.

Software names are also weaker, with the iShares Expanded Tech-Software Sector ETF down more than 1% and on pace for its sixth weekly decline in seven weeks. Synopsys and Cadence Design Systems drop 8% and 9%, respectively, while Palantir Technologies and Microsoft each fall about 2%.

Our earlier analysis of the Nasdaq 100’s slide highlighted how a rotation out of AI and semiconductor leaders sparked broad selling in chip stocks and dragged the index lower. We also noted that key technical levels were breaking and the Nasdaq 100 was trading below its 20-day and 50-day moving averages, signaling persistent short- to medium-term pressure while volatility in chip-related ETFs remained a central risk.

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